Transcripts For RT Boom Bust 20240713

And russia seeing sharp rises in their cases brazil topped 127000. 00 and factions leading to an even gloomier outlook for the 2nd largest economy in the western hemisphere this as analysts Capital Economics have predicted at least a 10 percent decline in the nations quarterly growth this due to the outbreak while russia still seeing a surge in cases with most of its capital and largest city moscow the virus lock down combined with the global drop in oil prices well theyve contracted russian economy activity by one 3rd according to the countrys federal tax service chief meanwhile the us still the epicenter of the global disease with more than 1600000 cases the us unemployment numbers are still growing last week another 3300000 people filed for jobless claims bringing the 7 week total to 33500000 this while President Trump has renewed his calls for the Supreme Court to strike down the countrys Affordable Care act also known as obamacare this is a move criticized even by his own general attorney or attorney general rather according to. I thought that. Obamacare is a disaster but we run it very well were going to replace obamacare with Great Health Care at a lesser price and preexisting conditions will be included and you wont have the individual mandate which was expensive and terrible and very unfair to everybody and it was very unpopular. Well the u. K. Has the most the most deaths in europe with more than 30000 fatalities some experts are forecasting a 14 percent drop in the nations g. D. P. In 2020 the worse in 300 years meanwhile the food and Drug Administration u. S. Biotech firm a durned has now now has a green light to move on to phase 2 trials for the coated 1000. 00 vaccine which shares jumped on the news the stock is up 150 percent year to date this comes as some scientists discovered slight mutations in some strains of the virus it remains unconfirmed whether these mutations will lead to an increase in contagiousness 1000. 00 still taking its toll on the Global Economy as unemployment and business failures continue to pile up for more numbers and formation on the coronavirus be sure to check our portable dot t. V. Up and look for the section that trucking coronavirus. Jobless claims still on the rise as we just mentioned new numbers released thursday showed 3. 2 more 1000000 americans filed for unemployment in the last week of april that brings the total to 33500000 filings over the past 7 weeks thats now one in 5 americans on friday the Labor Department will release the number of payroll jobs lost in april now economists are predicting 21000000 lost jobs that would bring the Unemployment Rate to 16 percent skyrocketing from the 4. 4 percent in march and its highest levels since the Great Depression well for more were joined by boom bust cohost christine i was in sight or former fed insider and c. E. O. Of cool intelligence danielle de martino booth ladies thank you for joining me today christy lets start with you it looks like markets didnt have that big of a reaction to these new unemployment numbers what are we seeing on the stories day. Well on thursday the markets completely ignored the new unemployment numbers and was actually up. In fact its it was massively in the middle of the day and it mark one of the 1st time one of the major indexes the nasdaq was up year to date and the entire corona pandemic led to the closure of all the nonessential businesses so essentially we had all of the tech rally and all of the good earnings from Google Facebook essentially all the bank stocks it basically let all the market back up and we are now just a wall toss away from the all time highs so basically even with the unemployment numbers the news wire was bad but apparently this is less bad because last weeks tell you what the lowest since shortly after the quote a virus was declared a pandemic so many analysts believe that we have kind of cycled through the worst of the 4 shutdowns but on the other camp they dont think its true many think that the aftermath of the disaster is going to be the much bigger problem than the disaster itself its going to be the rebuilding and the reopening and this is not going to be a very quick recovery but at the market in and of itself they are still up on optimism because we are doing less bad than good news is bad news event its good news narrative its still intact while we are waiting on our report for more numbers to come out for the month of april tomorrow well see if that has any effect on the market but danielle 10 year treasury yield fell by point 7 percent on thursday and now this comes after the week treasury also announced that it would borrow the record 2. 00 trillion dollars this quarter and theyre also launching a 20 year bond this to help fund their borrowing what does this mean for the future. Well i think that were starting to see the actual numbers come out so its no longer 25. 00 trillion dollars of debt in theory that were going to tack 3 trillion extra on to this is reality folks and the treasury is going to have to borrow a lot of money and it is it is a unique time that the stock market in the bond market are really serving up such disparate views on the outlook for the u. S. Economy if you would have said a few years ago the trade. Going to shoot 3 trillion dollars in debt you would say wow i would i would think that Interest Rates on the 10 year benchmark would be through the roof and yet thats not what were seeing so you know the word i would attach to this is conundrum. What is a reasoning behind the why do you think were not saying that. Well i think we also have to appreciate that other Countries Worldwide large nations germany japan theyve got negative Interest Rates so when it comes to seeking yield in a world where central bankers have pushed overnight lending rates to 0 to 0 bounded in some cases into negative territory there are still investors out there who are seeking the sake haven safe haven scuse me of a treasury bond and looking for some kind of yield with it so it really can come down to a simple matter of supply and demand and there seems to be that its still reliant on that but danielle i want to turn to these Mortgage Rates that were seeing pom it to some record lows as well to 3. 4 percent but Mortgage Applications appear to be going up what do you foresee happening with the home sales and even as new home starts. Well you know its interesting i think that were going to need some time to be able to tell whats happening with the Housing Market were not seeing confidence among baby boomers really. Increase at the same level that were seeing the fang stocks increase for example and if that level of low confidence remains among the baby boomers once states are open and once people feel safe enough to have open houses we could see a tremendous amount of supply come onto the market something we havent seen in years and that really could put a crimp in the u. S. Housing market bank of America Merrill lynch one of the most bullish of all the big investment banks on wall street on housing came out and predicted that home. This is down by 2. 3 percent by the end of next year so i think its really difficult to read into the tea leaves until youve truly got all of the homes that are going to be listed on the part of individuals who say you know what i dont trust my stock portfolio i dont trust my ira for a one k. Im going to try and get the money out of my house and downsize while i can well thats not even coming from those who are refinancing their mortgages what are we seeing there. Well were definitely seeing a massive rush to refinance. Mortgages mortgage servicers they cannot handle the sheer amount of volume that theyre seeing for these refinancing applications as americans try before home prices fall to get as much equity out of their homes to lower those mortgage payments as they can because we have to bear in mind while refinancing applications are definitely up huge year over year applications to purchase a home are down 19 percent over the prior year so we really are seeing this huge surge of activity among those who want to refinance their house absolutely kristie i want to turn to retail now more and more retailers are filing for bankruptcy now today earlier on thursday luxury retailer Neiman Marcus filed for bankruptcy earlier this week we saw american giant j. Crew also declaring bankruptcy and now theres some talk that saks 5th avenue could be a potential buyer of the luxury retailer Neiman Marcus are we going to see some possible mergers here especially when it comes to these luxury brands. Now it could be again it does make sense because saks that they do have cash on hand and do have the buying power in our brand such as j. Crew the problem is given the fact that everybody has kind of rained and spending and we dont expect a quick we found in consumer goods any time soon especially in the luxury level then playing cash right now for an acquisition of a decently summiteers sized name brand like j. Crew is but its not. Necessary and at a time like this i think for access i think they are more in survival mode so i think the best course for them is to actually whores that cash and make it last as long as possible because we all saw what happened to barney and now you had Neiman Marcus so now its like whoever can outlast the next the next retailer wins essentially so it was a merger if that was merging with the like and equally have to weaker balanchine merging to become a strong Balance Sheet this works but right now back to be deploying valuable cash resources to acquire a smaller segment that really isnt worth their time or effort what about macys where do you see the them going i mean theyve theyve closed a lot of stores even before the Coronavirus Crisis started. Macys has macys equities value is primarily divide derives from their real estate value so many while many analysts do see that macys is undervalued given their real estate its kind of hard to put the finger on because macys has been known to have declining year over year same store sales and they havent expanded at all so the private equity buyers they have a Major Overhaul plan in store for macys but that remains to be seen because they tried to do the same thing with barneys and we all saw that that did not work especially when you have so many locations like Neiman Marcus Flagship Store that opened here the hudson yards in manhattan i mean that that was out doing clearly not well but danny i want to turn to you turning over to the fed and the stimulus here a new fed study actually found that rural states have apparently been approved for more of these p. P. P. Loans or Small Businesses the more populated coastal states who have been affected greatly and more so by the virus are only getting a small portion now many economists some economists are suggesting that this is because these rural banks are rural states are serviced by Smaller Banks do you agree is that the reasoning behind this. Well i. I think that that has to be one of the factors i mean all of the anecdotes that weve heard especially about that initial round of 349000000000 in p. P. P. Loans all of the anecdotes that weve heard said that whether you were in a big city or in a small town as long as you went to a smaller bank you were going to get Better Service and you were going to get processed more quickly so i think part of it was a matter of the small banks being more open to take these loan applications weve heard the stories about Wells Fargo Bank of america only wanting their own clients that are to have accounts with them 1st thats naturally going to lead Small Businesses into the arms of the Smaller Banks but to your point there is something to be said for the fact that maybe maybe the coastal regions are more in need of these p. P. P. Funds because their economies have had to shut down for longer periods of time well especially given the circumstances a lot of Small Businesses are still waiting on their applications to be processed they still have not seen any money yet and who knows if they will especially we dont know yet what the economy is reopening how much more stimulus will go into this boom bust cohost christine and former fed insider danielle de martino both thank you so so much for your time. Thank you. On wednesday the u. S. Told the World Trade Organization there was no valid basis for the e. U. To retaliate with tariffs against the u. S. This is over the ongoing boeing airbus subsidy disputes well u. S. Trade representative robert light hisor said with washington states repeal of this relatively minor tax reduction the United States has fully implemented the recommendation and ng this dispute this step ensures that there is no valid basis for the e. U. To retaliate against any u. S. Goods while in cases dating back to 2004 the w t o found the worlds 2 largest plane makers received billions of dollars and unfair subsidies will ultimately it would allow both sides to then impose tariffs on each others goods the u. S. Already imposed tariffs on 7500000000. 00 worth of goods including aircraft wines and even cheeses well the w t o is expected to reach a decision on use tariffs request by june. Time now for a quick break but hang here because when we return the privacy concerns continue over Coronavirus Tracking apps now in the u. K. Could that spill over to the u. S. Well discuss with you must cohost juan as we go to break here the numbers are but. The so. Yes ding dong the witch is dead Warren Buffett the extortionist private equity nut job is recorded Game Changing record breaking losses as Berkshire Hathaway is Holding Company goes belly up. The world is driven by shaped. Thinks. We dare to ask. Is youll be a reflection of reality. In a world transformed. What will make you feel safe. High salacious community. Are you going the right way or are you being led to. Direct. What is true what is faith. In the world corrupted you need to descend. To join us in the depths. Or remain in the shallowness. As concerns continue to grow over the spread of corona virus more and more governments are looking for Tech Companies to roll out Contact Tracing apps well apple and google have claimed that they will create an app that can do just that but there are some enormous privacy and even civil liberty concerns that are happening over these apps well that includes in the u. K. Where an influential Parliamentary Committee is that warning that the n. H. S. Contact tracing app must not be rolled out across the u. K. Until the government has increased privacy and Data Protection and joining us now to discuss the host and investigative journalist ben swan ben thanks for joining us today now among these concerns over the u. K. Contract tracing up the joint committee on human rights said on thursday that it was essential legislation it was and acted to to ensure that mass surveillance of personal data did not result in a violation before the trial was actually expanded what are the biggest concerns were seeing here. Yes so essentially its important for people to understand 1st of all that google and apple together have tried to create or they say theyre creating it will be released this month this contact tree seen up that is separate from the Contact Tracing apps that are being developed by different governments around the world so in the u. K. Theyre not using the google apple version not to say as this is a really a good or bad thing but theyre not using it theyre creating their own and the reason theyre creating their own is because they along with countries like france and germany have decided that the google and the apple Contact Tracing app doesnt go far enough so thats one of the concerns here so essentially what these have in common is they use Bluetooth Technology you have an app on your phone someone else has it on their phone it uses essentially the bluetooth to be able to connect and to determine whether or not you come in contact with someone who has a coronavirus the problem is. That under the google apple system its entirely voluntary and like in the u. K. They dont necessarily want it to be voluntary they want to be able to track as many people as possible and to have data thats included in that that tells you the persons location it gives you information about who they are where they are and where and where theyre headed to so theres way more information being given to the authorities than there is under the google apple version well weve discussed this before here on boom bust panda a few weeks ago where france was asking apple and google to take some settings and do some resetting of some of these apps so that they could they could actually continue with this at this tracking app but the n. H. S. Granted Privacy International early access to the app the researchers actually used an internal version of the app auditing pop form its called exodus and privacy what did they actually find it yes so one of the things that they found was that apparently the u. K. Version includes something called google firebase analytics and also microsofts apps and her analytics trackers now whats important about that is that according to this group those apps and that technology that Analytics Technology does gather a large amount of data about the user themselves and it uses other apps within the phone to be able to do that so essentially its not just tracking you in terms of contact with people who have coronavirus its much more invasive than that by using those tools its also important that the way this is being established is that right now according to the u. K. They say well listen were not using all of those features and if you have this on your phone you know we still respect your privacy were going to gather too much data but what authorities are warning about and experts are warning about is that if you approve the settings on your phone and then in a later version and update goes through that now begins to track you youve already accepted the permission so you will know and it will automatically begin tracking you in more of a truce of way thats a lot. Very very intrusive were hearing now the app has been somewhat controversial obviously due to the n. H. S. The decision not to use the google and apple tour which is thought to be released and mid may but is the u. K. Model something that were going to see rollover and spill over here to the u. S. Well i think a jury cushion or has its way the answer will be yes to that unfortunately the trump of ministration seems to be pushing this forward as well and again this Congress Listen Contact Tracing it makes sense to an extent but only if its an opt in system instead what you find over and over with these different Government Entities that are creating these apps is that what they want to be able to do is number one gather large amounts of data on users number 2 they want to be able to track you and they want to number 3 be able to access that data and store it for themselves its not necessarily better of google and apple do it because then google and apple are the ones who are storing the data right the problem is going to be this that when a government comes in and says hey we can use this for a much wider applications then coronavirus where does it go away at what point did those apps disappear or do they become embedded in the framework of every smartphone i think and most people are smart enough to know thats where were headed and thats why its a problem either way the data is going somewhere we all know that nothing and nothing is actually free especially when it comes to the data collecting apps cohost spend so on it thank you for your time and analysis. Sort of the. Tensions between the United States and china are on the rise while its creating concern that it could be the start of a new cold war and it could eliminate progress already made on the u. S. China phase one trade deal arties Rachel Blevins joins me now to discuss the details rachel whats the current state where we saw them sign the phase one trade deal just a few months ago where are we now well at this time the United States and china were supposed to be in the process of finalizing phase 2 of this massive trade deal but instead President Trump is now questioning whether china is moving forward with all of the agreements they made on phase one now because of this he is saying that he plans to talk to farmers in the coming weeks to decide whether or not to terminate the deal altogether and that could lead to even more tariffs on china now this all comes as the state department has confirmed that they are no moving forward with plans to turbo charge their plan to reduce their reliance on chinas manufacturing supply and they say that theyre doing this simply because they want to work with what they describe as friendly nation this was a nearly 2 year u. S. China trade where the worlds 2 largest economies are now we may be backtracking and basically canceling that phase of one trade deal its its crazy what were seeing here how is china or china has actually want to respond to these sort of comments is there what have they said rise or chinas obviously frustrated with these comments from President Trump and theyre also frustrated with all of the comments that are coming out of the trip and ministration about the coronavirus and a spokesperson for china specifically responded to these comments from the u. S. Claiming that the coronavirus may have come from a lab and move on or that china delayed information about the coronavirus and so thats something that a spokesperson for trying to Foreign Ministry spoke out about and specifically the secretary of state might pompei oh she accused him of making up lies and failing to keep his story straight take a listen to what she said. The reason why he made such selfcontradictory comments is because he has been making up and covering up a lie by fabricating more lies that is an open secret already it is not only a war between humankind and viruses but also a war between truth and lies on the shifting the blame will not solve the problem or the lives lost we sincerely regret any more of the lives lost in the United States. China is now calling on the United States to present any evidence it may have these claims and its also accusing washington of trying to place the blame on beijing to take away from the way that the u. S. Has responded to the current of a lot of play here thats for sure but is there any sign of the u. S. Actually backing down i mean clearly the china like it well what have they said well the travel ministration doesnt appear to be backing down any time soon and secretary of state my pompei was specifically said that he expects tensions with china to remain high and told beijing responds with the information the u. S. Wants specifically on the origins of the coronavirus and on patient 0 take a listen to what he said this is why this is why when i see people say well americas bullying the chinese. Are demanding of them only what we demand of every nation be transparent be open be a reliable partner the very things they say the chinese say they want to cooperate great. Cooperation is about action. Opening up its about sharing this information so the details of where patient 0 where this began are things that are knowledge its in the possession of only the Chinese Communist party. Now there are reports that trade representatives from both the u. S. And china could meet over the phone in the next week to talk about the ongoing accusations and everything here but at the same time there is a lot of concern about this ongoing rhetoric specifically over the current a virus and whether it will hurt not only the trade talks but also overall relations between the u. S. And china so much so that it could lead to a new cold war that and more even the Global Economy thats already hurting from the pandemic it has already been hurt for the last couple of years because of the trade war well hopefully this is just an empty threat and we dont see a trade war part 2 between the 2 largest economies thank you r. T. Correspondent rachel think thats it for the time you can catch him bust on demand the brand of possible t. F. As always you can catch it on you tube. R t the next time. You cant be go with yeah you like. Time after time called parisian to repeat the same mantra sustainability its very important to accelerate the transition to sustainable transport sustainability stadium and a more equitable and sustainable well. They claim their production is completely harmless. If. Companies want us to feel good about buying products while the damage is being done far away this is again this. Is going to. Seem. Just dont all. Get to shake out. And in. The trail. Find themselves worlds apart. To look for common ground. Hello and welcome to redact its an idea im your host name we care about any you know well guys. For the early days of quarantine when we were like hey remember pants. Well wheres those. Now weve seen every news anchors unshaven legs theyre naked husband in the shower behind them and worse cuomo gym shorts and its not a joke and more. And it is we have great show proof and i leave camp sits down with the jaipur shot a journalist and an author of 30 books a political philosopher and the executive director of the Tri Continental Institute for social research they talked about the failures of our government to deal with this crisis the demands workers should be making and much more than redacted correspondent Natalie Mcgill will talk about some mind blowing old news from Medieval Times the era the eatery then i will go into how big businesses are taking Small Business support good news for people who like breathing and how the virus is remaking the College Process College Education process but 1st lets go to that interview between we camp and v. J. Thank you so much really there. Im a big fan of your writing you wrote it actually an article recently in which you said during a pandemic